PlayStation Network Breach Now Leads to Lawsuit

By Ben Strauss

It has finally happened; Sony is now being sued for the admitted security breach in the PlayStation Network.  A lawsuit has been filed on behalf of Kristopher Johns, who accuses Sony of not taking “reasonable care to protect, encrypt and secure private and sensitive data of its users.”

Filed in the U.S. District Court for the Northern District of California, the lawsuit was already hinted at by IndustryGamers earlier this week

Johns alleges that Sony took far too much time to notify him and others on the PSN of the security breach, originally staying quiet when the problems began.  Sony did not allow customers “to make an informed decision as to whether to change credit card numbers, close the exposed accounts, check their credit reports, or take other mitigating actions.”

The lawsuit is seeking class-action status while asking for monetary compensation as well as free credit card monitoring. 

IndustryGamers spoke with Wedbush analyst Michael Pachter, who is sceptical of the lawsuit’s viability.  “It’s really hard to show damages. How much does it cost you to have your identity stolen?  Especially if you can’t prove that it was used for any purpose whatsoever?  Pain and suffering?  Not appropriate for a class action, so the amount of the settlement would be very small, if anything at all.”

The suit can be viewed here.

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.